Critical Illness (CI) cover appears to be the nations choice of insurance, with almost twice the amount of employed workers taking out this insurance over Income Protection (IP). However, IP is likely to be the more important of the two, if making the choice. Self-employed workers are also at the highest risk of a financial issue if they are unable to work for a length of time, yet very few have financial protection.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it.
Taking a gamble
Market research shows that just under 40 percent of working people have life insurance, even though over 60 percent of them have children and over 40 percent have a mortgage.
A much lower percentage, close to 10 percent, have Critical Illness cover and only around six percent opt for Income Protection.
This already shows that a huge proportion of the population are taking a gamble with their financial security across the board.
Life cover really should be in place if you own a home, particularly if you have dependents and a mortgage against that property.
Critical illness is also a valuable cover to have, especially as according to a 2015 report by AIG Life, the average age for claimants was just 45 years old.
Why IP can be considered the most valuable
Although twice as many people are putting their focus into CI, there is an estimated 20 percent chance of you being out of work at some point during your working life due to poor health.
In addition, market research suggests that over half of people don’t have more than £5,000 in their savings to support them during a time where they are unable to earn.
Whilst protecting your health is important, so is protecting your valuable income stream.
It is important to recognise too that IP covers all of the same medical conditions that CI does, plus a range of other more likely health issues.
IP has in recent years become more affordable as policies are better tailored to suit to your requirements.
Income protection for self-employed
If you are self employed then you are a higher risk of financial difficulty in the event you are able to work.
Most self-employer workers find they are always trying to save money. However, it could be detrimental and counter productive if you suddenly find your income stream under threat with no security blanket.
Need financial protection? Speak to Darren
Dental & Medical Financial Services have been helping doctors and dentists with carefully selected financial protection products for over 25 years. Call to discuss your options with Darren:
Tel: 01403 780 770
Follow us for regular updates:
?